Technical analysts often find moving averages useful as a way of smoothing out a stock’s price action in order to help clarify the market’s prevailing trend. Also, many trading strategies use moving averages to signal potential trade entry and exit points.

For example, a stock’s 50 day moving average is considered an indicator of its medium term trend, while its 200 day moving average is considered indicative of its long term trend. When a stock’s price is trading near both of them, and the 50 day is above the 200 day, that configuration indicates a bullish situation for the stock, which would suggest taking a long position ahead of the support provided by these two key medium and long term averages.

Traders might also watch for confirmation, such as buying activity showing up near the higher 50 day moving average. Also, momentum indicators like the Relative Strength Index or RSI should be supportive of a rise in the stock.

Please find below a comprehensive list of stocks that are near both their 50 day and 200 Day moving averages, and where their 50 day average is reading above their 200 day. The results of these algorithmic scans of the stock market show which stocks could offer traders a short term buying opportunity.

Be sure to check our Disclaimer